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Presentation Title ( Arial, Font size 28 ) The Tata Power Company Limited Analyst Call, Q3 FY19 Date, Venue, etc ..( Arial, Font size 18 ) 28 th January 2019 Message Box ( Arial, Font size 18 Bold) Disclaimer This document does not constitute


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Presentation Title ( Arial, Font size 28 )

Date, Venue, etc..( Arial, Font size 18 )

The Tata Power Company Limited Analyst Call, Q3 FY19 28th January 2019

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Disclaimer

This document does not constitute or form part of and should not be construed as a prospectus, offering circular or offering memorandum or an offer to sell or issue or the solicitation

  • f an offer to buy or acquire securities of the Company or any of its subsidiaries or affiliates in any jurisdiction or as an inducement to enter into investment activity. No part of this

document, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This document is not financial, legal, tax or other product advice. This presentation should not be considered as a recommendation to any investor to subscribe for, or purchase, any securities of the Company and should not be used as a basis for any investment decision. This document has been prepared by the Company based on information available to them for use at a presentation by the Company for selected recipients for information purposes only and does not constitute a recommendation regarding any securities of the Company. The information contained herein has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with the document. Furthermore, no person is authorized to give any information or make any representation, which is not contained in, or is inconsistent with, this presentation. Any such extraneous or inconsistent information

  • r representation, if given or made, should not be relied upon as having been authorized by or on behalf of the Company.

The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify any person of such revision or changes. This document is highly confidential and is given solely for your information and for your use and may not be retained by you nor may this document, or any portion thereof, be shared, copied, reproduced or redistributed to any other person in any manner. The distribution of this presentation in certain jurisdictions may be restricted by law. Accordingly, any person in possession of this presentation should inform themselves about and observe any such restrictions. By accessing this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your

  • wn view of the potential future performance of the business of the Company.

The statements contained in this document speak only as at the date as of which they are made, and the Company expressly disclaims any obligation or undertaking to supplement, amend or disseminate any updates or revisions to any statements contained herein to reflect any change in events, conditions or circumstances on which any such statements are

  • based. By preparing this presentation, none of the Company, its management, and their respective advisers undertakes any obligation to provide the recipient with access to any

additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. This document has not been and will not be reviewed or approved by a regulatory authority in India or by any stock exchange in India. This presentation is meant to be received only by the named recipient only to whom it has been addressed. This document and its contents should not be forwarded, delivered or transmitted in any manner to any person other than its intended recipient and should not be reproduced in any manner whatsoever. This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration, or an exemption from registration, under the U.S. Securities Act of 1933, as amended. Any public offering in the United States may be made only by means of an offering circular that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements. This presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in the Company’s business, its competitive environment, information, technology and political, economic, legal and social conditions in India. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. In addition to statements which are forward looking by reason of context, the words ‘anticipates’, ‘believes’, ‘estimates’, ‘may’, ‘expects’, ‘plans’, ‘intends’, ‘predicts’, or ‘continue’ and similar expressions identify forward looking statements.

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Key Highlights Q3FY19

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❖ Consistent performance in Mumbai operations & other regulated businesses. Extension of Trombay PPA by 5 years until 2024. ❖ Underlying business EBIDTA of approximately Rs 7,200 crore for 9 months. ❖ Renewable Q3 EBITDA increase by 9% over PY from ₹ 471 Cr to ₹ 511 Cr due to capacity addition of 356 MW despite low PLF on wind assets. ❖ The High Power Committee Report has been approved by Govt. of Gujarat (GoG). Supplementary PPA has been finalized by GoG and is being discussed with other 4 states. ❖ Coal companies profit under pressure due to Domestic Market Pricing Obligations and increase in fuel prices. ❖ Healthy Tata Power Solar EPC order book of 1,255 MW. ❖ Gross debt has been reduced by around Rs.3,200 crore (using proceeds from Tata Comm Sale, Arutmin realisation and dividend from coal companies) during the year. ❖ Conso Debt – Equity ratio at the end of quarter stands at 2.24 against 2.48 in Mar 18.

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Consolidated Performance – Q3 FY19 Vs Q3 FY18

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Fig in ₹ Cr

Particulars Q3FY19 Q3FY18 Q3FY19 Q3FY18 Q3FY19 Q3FY18 Tata Power-Conso (line item 13 SEBI Results) 7,571 6,506 1,480 1,425 205 628 Standalone & Key Subsidiaries Tata Power (Standalone)^^ 1,803 1,846 610 788 290 204 CGPL (Mundra UMPP) 1,938 1,630 (99) 60 (467) (227) MPL (Maithon Power)* 759 379 196 65 67 (32) TPDDL (Delhi Discom)** 1,742 1,835 316 278 120 95 TPTCL (Power Trading) 1,239 903 19 8 10 1 Tata Power Solar (Solar Mfg) 1,032 743 36 56 4 21 TPREL (Renewable Power) 147 87 134 89 (13) (11) WREL (Renewable Power) 282 271 273 263 62 70 Coal SPVs^^^ (Investment Companies) 26 417 (64) 332 TERPL (Shipping Co) 257 139 67 78 38 53 EEPL (Shipping Co) 129 81 8 (0) 7 (1) TPIPL (Overseas Investment Co) 18 19 57 46 49 14 Others 121 93 16 18 3 5 TOTAL - A 9,468 8,026 1,659 2,165 106 523 Joint Venture and Associates*** 253 457 TOTAL - B 9,468 8,026 1,659 2,165 359 980 Eliminations# (1,897) (1,520) (179) (740) (120) (667) Exceptional Items

  • 299

Discontinued operations (34) 16 TOTAL - C 7,571 6,506 1,480 1,425 205 628

*TPCL stake-74%; **TPCL stake-51% stake; *** TPCL share, ^ including other income, ^^ PAT before exceptional item & discontinued operations,^^^ Consolidated at EBITDA & PAT level only #Eliminations include inter-company transactions

PAT EBITDA^

  • Op. Income
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Share of Joint Ventures and Associates – Q3 FY19 Vs Q3 FY18

Fig in ₹ Cr

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Particulars % Share Q3FY19 Q3FY18 Q3FY19 Q3FY18 Q3FY19 Q3FY18

Joint Ventures

Coal Companies (KPC, BSSR, AGM) 30% / 26% 2,157 2,175 366 663 143 332 ITPC 50% 80 77 79 83 23 25 Coal Infrastruture Companies (NTP) 30% 79 76 98 80 59 47 Cennergi Pty. Ltd. 50% 66 62 64 53 (0) 12 Powerlinks Transmison Ltd 51% 19 20 18 20 14 17 Industrial Energy Ltd 74% 55 58 45 46 23 17 Others (including adjustments) (3) 5 (9) 7 Total- Joint Ventures 2,456 2,468 667 950 253 457

  • OP. INCOME

EBITDA PAT

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Fig in ₹ Cr

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Underlying Consolidated EBITDA

Particulars Q3FY19 Q3FY18 Qtr Var YTD FY19 YTD FY18

Adjusted Business EBITDA 2,163 2,383 (220) 7,229 7,581 Less: EBITDA of JV Companies 667 950 (283) 2,438 2,750 KPC 334 615 (281) 1,406 1,745 BSSR 32 48 (16) 140 161 Coal Infra 98 80 18 269 247 Cennergi 64 53 11 191 166 ITPC 79 83 (4) 255 228 Powerlinks 18 20 (2) 54 65 IEL 45 46 (1) 123 138 Others (3) 5 (8)

  • Add: INDAS impact (AS 115)

(15) (8) (7) 83 74 Reported EBITDA 1,481 1,425 56 4,874 4,905 Less: Depreciation 603 584 (19) 1,790 1,714 Less: Finance Cost 1,014 855 159 3,061 2,854

PBT as per line item no.5 in Adv (136) (15) (121) 23 337

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Fig in ₹ Cr

Tata Power (Consolidated) Financial Performance

Particulars Q3FY19 Q3 FY18 YTD FY19 YTD FY18 Qtr Var Remarks Operating Income 7,571 6,506 21,919 19,256 1,065 Operating Expenses 6,105 5,172 17,254 14,720 (933) Operating Profit 1,466 1,334 4,665 4,536 132

Mainly due to higher EBITDA in regulated business and addition of renewable capacity.

Other Income 15 91 209 369 (76)

Lower service fees

EBITDA 1,480 1,425 4,874 4,905 56 Interest cost 1,014 855 3,061 2,854 (159)

Due to MTM gains in PY on forex loan, increased ST loans in CY & increased cost in renewables for new commissioned capacity.

Depreciation 603 584 1,790 1,714 (19) PBT before share of JV (136) (15) 23 337 (122) Share of profit of Assoc and JV 253 457 1,054 1,272 (204)

Due to lower profits in coal companies.

PBT after share of JV 116 443 1,077 1,609 (326) Tax Expenses (122) 129 127 269 (252) Exceptional item (gain)/loss

  • (299)

(1,483) 135 (299) Net Profit for the Period from continuing op* 239 612 2,434 1,205 (374) PBT after exceptional item 116 144 2,560 1,474 (27) Profit from discontinued operation (34) 16 (101) 41 (50) Net Profit for the Period ** 205 628 2,333 1,247 424

*Line No.11 of advertisement, ** line no 13 of the advertisement

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Fig in ₹ Cr

Tata Power (Standalone) Financial Performance

Particulars Q3FY19 Q3FY18 YTD FY19 YTD FY18 Qtr Var Remarks Operating Income 1,803 1,846 5,569 5,465 (43) Operating Expenses 1,264 1,319 3,791 3,694 55 Lower transmission charges in CY and

provisions in PY

Operating Profit 539 527 1,778 1,770 12 Other Income 71 261 417 658 (190) Higher dividend in PYQ EBITDA 610 788 2,195 2,428 (178) Interest cost 379 352 1,056 1,099 (27) Increase in short term borrowing Depreciation 157 162 472 474 5 PBT 74 274 667 855 (200) Tax Expenses (216) 74 (158) 299 (290) Deferred Tax recoverable on BEST PPA extension PAT (before adjustments) 290 200 825 556 90 Exceptional item net of tax

  • 303 930 192 303

PAT for the period* 290 503 1,755 747 (213) Discontinued operation PAT (34) 16 (101) 41 (50)

Defence business being shown as discontinued

  • perations

PAT for the period after discontinued operations** 256 519 1,655 789 (263)

  • * Line no.9 of advertisement ** Line no.11 of advertisement
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CGPL : Key Highlights

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Fig in ₹ Cr

Particulars Q3 FY19 Q3 FY18 YTD FY19 YTD FY18 Qtr Var Remarks Generation (MUs) 7,163 6,570 19,070 18,898 593 Sales (MU) 6,615 6,061 17,572 17,405 554 Availability (%) 85% 79% 75% 75% 5% PLF (%) 78% 72% 70% 69% 6% FOB price of coal (USD/T) 62.2 61.3 62.9 60.1 0.8 Revenue (₹ /Unit) 3.0 2.7 2.9 2.6 0.3 FOB Fuel under recovery (₹ /Unit) (0.95) (0.78) (0.92) (0.80) (0.2) Financials Operating Income 1,938 1,630 5,094 4,556 308

Higher Sales

Operating Expenses 2,039 1,595 5,214 4,433 (444)

Increased Coal Price & weaker Rupee

Operating Profit (101) 35 (121) 123 (136)

Increased Fuel under recovery due to higher generation

Other Income 2 25 4 27 (23)

Lower dividend from EEPL

EBITDA (99) 60 (117) 150 (159) Interest & Finance Cost* 225 165 800 630 (60)

  • IRS MTM gain in PQ - Rs.43 crore
  • Increase in ST loans and processing

fees on refinancing of loans

Forex Loss / (Gain) - Others 24 6 105 51 (18)

MTM on fx hedge

Depreciation 119 116 341 340 (3) PBT (467) (227) (1,363) (871) (240) PAT (467) (227) (1,363) (871) (240)

* Includes fx gain/loss pertaining to debt servicing

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Coal Business: Key highlights

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Coal Company - KPC Q3 FY19 Q3 FY18 YTD FY19 YTD FY18 Coal Mined (MT) 14.0 13.9 44.0 43.7 Coal Sold (MT) 14.6 14.5 41.6 43.5 FOB Revenue (USD/T)* 63.5 70.6 65.7 67.3 Royalty (USD/T) 9.1 8.6 9.3 8.7 Net Revenue after royalty (USD/T) 54.4 62.0 56.5 58.6 Cost of Production (USD/T)** 38.9 36.8 39.5 34.3 COGS ($/T) - Including Inv Movement 40.3 38.0 37.4 34.4 Gross Profit (USD/T) 14.2 24.0 19.1 24.2

* Revenue impacted by Domestic Market Obligation (DMO) regulation

** Increase due to high fuel prices

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CGPL and Coal companies - performance

Generation at Mundra Coal mining, Coal Infra & Shipping Companies

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Fig in ₹ Cr

CGPL Q3FY19 Q3FY18 Qtr Var YTD FY19 YTD FY18 % Revenue 1,938 1,630 308 5,094 4,556 19% EBITDA (99) 60 (159) (117) 150 -264% PAT (467) (227) (240) (1,363) (871) 106% Coal & Infrastructure Business Q3FY19 Q3FY18 Qtr Var YTD FY19 YTD FY18 % Revenue 2,623 2,471 152 6,585 6,938 6% EBITDA 539 818 (279) 2,030 2,346

  • 34%

PAT 247 431 (184) 979 1,197

  • 43%

Net PAT (220) 204 (424) (384) 326

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Maithon Power Limited : Key highlights

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Fig in ₹ Cr

Note: Figures are for MPL Standalone. Tata Power’s stake is 74%

Particulars Q3FY19 Q3FY18 YTD FY19 YTD FY18 Qtr Var Remarks Generation (MUs) 1890 1,312 5,429 5,376 578 Sales (MU) 1784 1,231 5,124 5,065 553 Availability (%) 91% 61% 83% 84% 30% Extended outages in PQ PLF % 81% 57% 78% 78% 24% Financials Operating Income 759 379 2,020 1,637 380

Higher availability. One time impact of Tariff Order for Rs.97

  • cr. taken in Q3FY18

Operating expenses 564 320 1,480 1,177 (244)

Higher cost

  • f

fuel due to increased PLF

Operating profit 195 59 540 460 136 Other Income 1 6 4 12 (5) EBITDA 196 65 544 472 131 Interest cost 52 47 153 156 (5)

Higher interest rate and increased ST borrowing

Depreciation 60 59 178 177 (1) PBT 84 (42) 213 138 126 PAT 67 (32) 169 104 99

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Tata Power Delhi Distribution Limited : Key Highlights

Fig in ₹ Cr

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Note: Figures are for TPDDL Standalone, Tata Power’s stake is 51%

Key Indicators Q3FY19 Q3FY18 YTD FY19 YTD FY18 Var Qtr Remarks Generation (Mus) 0.49 0.47 1.57 1.55 0.02 Purchase (Mus) 1978 2,012 7,761 7,559 34 Sales (Mus) 1826 1,866 7,184 6,946 (40) Revenue Per Unit 9.54 9.83 8.08 7.95 (0.29) Financials Remarks Income from Operation 1,742 1,835 5,802 5,521 (93)

Due to lower Sales

Power Purchase 1,266 1,395 4,416 4,212 129 Other operating Exp. 188 178 581 569 (10) Operating Exp. 1,454 1,574 4,998 4,781 120 Operating Profit 288 261 804 740 27 Other Income 28 16 73 43 12

Higher consultancy income

EBITDA 316 278 877 782 38 Interest/Finance Charg 85 83 268 264 (2) Depreciation 76 72 224 255 (4) PBT 155 123 385 263 32 Current Tax 35 28 89 64 (7)

PAT 120 95 295 200 25

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Tata Power Solar Limited : Key Highlights

Fig in ₹ Cr

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Particulars Q3FY19 Q3FY18 YTD FY19 YTD FY18 Qtr Var Remarks Operating Income 1,032 743 1,690 2,087 289

Higher sales driven by EPC projects

Operating expense 996 687 1,599 1,899 (309)

Higher turnover and hedge cost

Operating profit 36 56 91 188 (20) Other Income

  • EBITDA

36 56 91 188 (20) Interest cost 9 10 21 26 1 Depreciation 20 19 58 55 (1) Tax 4 6 7 25 2

PAT 4 21 6 83 (17)

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Tata Power Renewable (Standalone): Key highlights

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Fig in ₹ Cr

Particulars Q3FY19 Q3FY18 YTD FY19 YTD FY18 Qtr Var Remarks Capacity (MW) 724 444 724 444 280 Generation (MUs) 276 152 1,026 620 124 Sales (MU) 271 147 1,000 600 124 Avg PLF (%) - Solar 23.5% 19.3% 20.4% 18.4% 4.3% Avg PLF (%) - Wind 10.4% 12.4% 23.0% 21.6%

  • 2.0%

Financial Performance Operating Income 147 87 518 361 59

Due to addl 280 MW of capacity operational compared to PY offset by lower wind PLF.

Operating Expenses 23 9 56 36 (14) Due to capacity addition Operating Profit 124 78 462 325 46 Other Income 10 10 68 110 (0) EBITDA 134 89 530 435 45 Interest & Finance Cost 82 53 229 151 (30) Due to commissioning of 280 MW Depreciation 65 54 193 148 (11) Due to capacity addition PBT (13) (18) 108 137 5 Tax

  • (7) 10 -

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PAT (13) (11) 98 137 (2)

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Walwhan Renewable : Key highlights

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Fig in ₹ Cr

Note : The Company has been acquired on 14th Sep, 2016.

Particulars Q3FY19 Q3FY18 YTD FY19 YTD FY18 QTR Var Remarks Capacity - Wind (MW) 146 146 146 146

  • Capacity - Solar (MW)

862 862 862 862

  • Capacity - Total (MW)

1008 1008 1008 1,008

  • Generation (MUs)

390 381 1,301 1,238 9 Financials Operating Income 282 271 920 881 11

Restoration of plant in Gaya

Operating expenses 22 20 71 65 1 Operating profit 261 251 849 815 10 Other income 12 12 25 23 EBITDA 273 263 874 839 10 Interest cost 113 106 342 376 7

Due to conversion of short term to long term loan

Depreciation 72 71 215 213 Tax 27 17 101 52 10

Lower MAT Credit

PAT 62 70 216 198 (8)

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Renewables – Consolidated View for Q3FY19

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Fig in ₹ Cr

Key indicators TPREL^ Walwhan Wind Assets* Cennergi & Others$ Conso Renewable s (without EPC) EPC# Conso Renewables (with EPC)

Capacity (MW) 724 1,008 380 338 2,450 2,450 Revenue 147 282 35 20 484 1,032 1,516 EBITDA 134 273 24 44 475 36 511 PAT (13) 62 (21) (15) 13 4 17 Net Worth 5,083 2,029 335 66 5,546 392 5,938 Net Debt 3,611 5,066 700 467 9,844 454 10,298

^ TPREL standalone *Tata Power standalone # Tata Power Solar $ Cennergi being a JV, only share of EBITDA and PAT is included

Note: 1. Conso EBITDA & PAT excludes inter company dividend

  • 2. Conso net worth excludes inter company investments
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Leverage Management - Debt Profile

Fig in ₹ Cr

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PARTICULARS Rupee Forex Total Rupee Forex Total Long term 8,338 - 8,338 22,722 3,782 26,504 Short term 6,942 19 6,961 14,275 2,604 16,879 Current Maturity of LT 1,758 - 1,758 3,427 81 3,508 Total Debt 17,038 19 17,057 40,424 6,467 46,891 Less: Cash 28 1,090 Net Debt 17,029 45,801 Equity 15,649 20,418 Net Debt to Equity Q3 FY19 1.09 2.24 Q4 FY18 1.14 2.48 STANDALONE CONSOLIDATED

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Company 31st Dec 2018 31st March 2018 (Dec) / Inc Remarks CGPL 8,538 9,989 (1,451) Infusion of equity using Tata Comm Stake sale Coal SPV 5,818 7,072 (1,254) Repayment of loans using dividend from coal companies TPDDL 2,804 3,016 (212) Repayment of loans WREL 5,066 5,162 (96) Repayment of loans TPREL 3,611 3,323 288 Addl Debt for Capex offset by repayment of existing loans TPSSL 454 296 158 Additional Debt for Working Capital reqt Maithon 2,552 2,157 395 Additional Debt for Working Capital reqt TATA Power* 17,058 16,446 612 Debt for CGPL loss funding & new capex Others 990 1,128 (138) Total Debt 46,891 48,589 (1,698) *Excludes Perpetual Debt of ₹ 1500 crore

Debt Profile

  • Rs. crore
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Regulated - Equity and Assets

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Fig in ₹ Cr

Particulars Q3FY19 Q2FY19 Q1 FY19 Q4 FY18 Q3 FY18 Regulated Equity Mumbai Operation 3,797 3,788 3,793 3,927 3,815 Tata Power Delhi Distribution 1,371 1,360 1,348 1,272 1,231 Maithon Power Limited 1,403 1,403 1,388 1,388 1,388 Powerlinks Transmission 468 468 468 468 468 Total 7,039 7,019 6,997 7,055 6,902 Regulated Assets Mumbai Operation 1,730 1,512 1,533 1,701 1,270 Tata Power Delhi Distribution 4,185 4,125 4,327 4,411 4,494 Total 5,915 5,637 5,860 6,112 5,764

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Website: www.tatapower.com Email ID: investorrelations@tatapower.com Investor Relations Team: Rahul Shah / S Kasturi Contact : Tel : +91 22 6717 1305 / 1345

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